It's funny how similar the arguments you guys make are to the arguments video game pirates make.
The fact of the matter is that downloading tons of software you didn't purchase is indeed illegal. We did already know this, didn't we? This isn't what's changing.
What's changing is enforcement. In the past, the SPA, RIAA and countless other organizations have persued primarily those who intended to seek a profit from piracy. It was pretty rare that they'd bust some kid for downloading Quake.
However, they did from time to time bust bulletin board systems that hosted lots of pirated video games. I knew a few people who were busted and a few others who were very near misses. None of these guys charged money. Simply put, the anti-piracy associations and the FBI sought to make examples of those who chose to DISTRIBUTE.
This is happening now with music. The only difference is that whereas before it was only some 31337 d00d who ran a BBS full of cracked PC games, people who share their mp3 files are average joes.... and there's a lot of them... and some of them aren't even aware that it's illegal. but then again, ignorance of the law has never prevented an arrest.
And really, that's the only thing to be upset about in my opinion--that this thing they've decided to enforce is very popular. I question our representative democracy when I see extremely popular ideas illegalized. Obviously the average joe doesn't think he's screwing the record companies when he downloads or shares an mp3 (much like he doesn't see the harm in lighting up a doobie in the privacy of his own home).
Aside from my anarchist-libertarian point of view, the other thing upsetting to me is the RIAA's absolute stupidity in that they are throwing away money they could be gaining now by selling software in the format and method in which many people seem to prefer it--and money that they could make in the future by essentially destroying their own industry. If there were a book called "How to Destroy the Music Industry", the record labels would be following every word of it.
Sometimes I wish we had anti-stupidity counter-legislation, whereby if you decide as a big corporation to do things that harm yourself financially and harm the industry as a whole, a committee would come in, shut down all your lawsuits and put you in counselling.